Page 34 - Bank-Muamalat_Annual-Report-2023

BANK MUAMALAT MALAYSIA BERHAD

PRESIDENT & CHIEF EXECUTIVE OFFICER’S
STATEMENT

Despite intense competition in the market for deposits leading to a compression of
the net profit margin from 2.66% to 2.22%, we were able to manage operating and Effective risk
credit costs prudently. Total operating expenses increased by RM42 million or 9.3%
to RM494.8 million, driven mainly by higher personnel expenses. Despite this rise, management practices
the Bank maintained operational efficiency, ensuring that expense growth did not and improved credit
outpace revenue growth.
quality within our
Our total assets recorded double-digit growth for the year at 23.9%,
financing portfolio
outperforming the industry average of 5.12%, largely driven by financing growth.
contributed to double
Effective risk management practices and improved credit quality within our
financing portfolio contributed to this growth. Despite the increasing trend of digit growth of total
credit cost across the banking industry, Bank Muamalat recorded RM7.8 million
assets.
or 18.9% lower allowance for impairment losses on financing. Our Gross
Impairment Financing (GIF) ratio was 0.93%, well below the industry level of 1.69%,
reflecting our commitment to helping customers manage their finances better.
Total revenue
As a result, we maintained strong capital ratios, with the Common Equity Tier I RM1.8 billion
(CET I), Tier I, and Total Capital Ratios at 11.40%, 12.85%, and 17.34%, respectively. ( 33.2% )
These were bolstered by the issuance of Tier-I Perpetual Sukuk amounting to
RM350 million during the year. The successful inaugural issuance of RM350
million Additional Tier 1 Sukuk Wakalah, in which the Bank also acted as the Joint Total financing income
Principal Adviser/Joint Lead Arranger & Joint Lead Manager, gathered wide RM1.4 billion
investor interest, earning the Regulatory Deal of the Year at the Islamic Finance
( 30.3%)
News (IFN) Deals of the Year 2023.
Our non-funded income ratio increased by 7.9% in FY2023, up from 6.2% Total deposits and investment
in the previous year while our return on equity, based on profit before tax recorded account
at 9.35%. We achieved this while upholding high standards of transparency, RM33.0 billion
corporate governance, compliance, and risk management.
( 24.1%)

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